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INFLUENCE BY THE NUMBERS: THE TRUE IMPACT OF CROSS-SOCIAL INFLUENCER MARKETING Q1 2018 INTRODUCTION Over the past few years, influencer marketing has become a valuable asset in the savvy brand’s arsenal. Factors such as the rise of ad blockers and the erosion of trust in traditional advertising have forced brands to look for new ways to market their products and services. Enter influencers. Digital creators are on the pulse of what fans adore; many boast thousands or even millions of social followers who are the exact demographic brands want to reach, and who are often highly engaged with influencers’ content. Influencer marketing on Instagram alone was reportedly worth around $1 billion in 2017, with the entire influencer marketing industry projected to reach anywhere from $5-10 billion by 2020. 1 In the spring of 2017 a new trend emerged, changing the way advertisers and brands approached their marketing strategies. Micro-influencers rose to the forefront of the scene and became hot commodities, with brands seeking them out and partnering with them on product integrations, shout-outs, and other forms of branded content. Various firms and publications raved about these digital stars — who by definition boast (relatively) small followings of fewer than 100K — because they were considered more cost-effective than pricier top-tier digital creators or A-list celebrities. 2 Essentially, since many micro-influencers are everyday consumers themselves who have managed to build small but loyal followings, brands believed they'd see higher ROI in terms of engagement, brand awareness, purchase intent, and other influence-based KPIs when partnering with these creators. Upon closer look, however, many of the commonly cited statistics and analyses related to micro- influencer effectiveness were a tad misleading. These studies didn’t always provide a more comprehensive picture of influencer marketing partnerships, and tended to focus more narrowly on the divide between follower counts and engagement rates — suggesting that these rates were equivalent to actual social influence. In similar fashion, the anecdotal examples of micro-influencer effectiveness usually referred to just one social platform (like Instagram or Facebook), didn’t represent a statistically significant sample size, and were rarely audited by third parties. It’s time we got a more accurate representation of the impact of influencer marketing. That’s why Fullscreen partnered with social media analytics firm Shareablee on a study during the fall of 2017. This study aimed to uncover the true value influencers deliver for brands across multiple social platforms, not just a single one. Additionally, the study analyzed several tiers of digital creators beyond the micro-influencer level and how these different tiers perform in terms of engagement, generation of brand trust, and purchase intent with consumers. 1 http://mediakix.com/2017/03/instagram-influencer-marketing-industry-size-how-big/#gs.awyqxtg 2 http://www.adweek.com/digital/micro-influencers-are-more-effective-with-marketing-campaigns-than-highly-popular-accounts/ 1 By: Sara Grimaldi - Senior Director, Measurement & Insights Mukta Chowdhary - Director, Strategy & Insights

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INFLUENCE BY THE NUMBERS: THE TRUE IMPACT OF CROSS-SOCIAL INFLUENCER MARKETING

Q1 2018

INTRODUCTION

Over the past few years, influencer marketing has become a valuable asset in the savvy brand’s

arsenal. Factors such as the rise of ad blockers and the erosion of trust in traditional advertising

have forced brands to look for new ways to market their products and services.

Enter influencers. Digital creators are on the pulse of what fans adore; many boast thousands or

even millions of social followers who are the exact demographic brands want to reach, and who

are often highly engaged with influencers’ content. Influencer marketing on Instagram alone was

reportedly worth around $1 billion in 2017, with the entire influencer marketing industry projected to

reach anywhere from $5-10 billion by 2020.1

In the spring of 2017 a new trend emerged, changing the way advertisers and brands approached

their marketing strategies. Micro-influencers rose to the forefront of the scene and became hot

commodities, with brands seeking them out and partnering with them on product integrations,

shout-outs, and other forms of branded content.

Various firms and publications raved about these digital stars — who by definition boast (relatively)

small followings of fewer than 100K — because they were considered more cost-effective than

pricier top-tier digital creators or A-list celebrities.2 Essentially, since many micro-influencers are

everyday consumers themselves who have managed to build small but loyal followings, brands

believed they'd see higher ROI in terms of engagement, brand awareness, purchase intent, and

other influence-based KPIs when partnering with these creators.

Upon closer look, however, many of the commonly cited statistics and analyses related to micro-

influencer effectiveness were a tad misleading. These studies didn’t always provide a more

comprehensive picture of influencer marketing partnerships, and tended to focus more narrowly on

the divide between follower counts and engagement rates — suggesting that these rates were

equivalent to actual social influence. In similar fashion, the anecdotal examples of micro-influencer

effectiveness usually referred to just one social platform (like Instagram or Facebook), didn’t

represent a statistically significant sample size, and were rarely audited by third parties.

It’s time we got a more accurate representation of the impact of influencer marketing. That’s why

Fullscreen partnered with social media analytics firm Shareablee on a study during the fall of 2017.

This study aimed to uncover the true value influencers deliver for brands across multiple social

platforms, not just a single one. Additionally, the study analyzed several tiers of digital creators

beyond the micro-influencer level and how these different tiers perform in terms of engagement,

generation of brand trust, and purchase intent with consumers.

1 http://mediakix.com/2017/03/instagram-influencer-marketing-industry-size-how-big/#gs.awyqxtg 2 http://www.adweek.com/digital/micro-influencers-are-more-effective-with-marketing-campaigns-than-highly-popular-accounts/

1

By: Sara Grimaldi - Senior Director, Measurement & Insights Mukta Chowdhary - Director, Strategy & Insights

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METHODOLOGY

A study is only as good as its sample size. Fullscreen and Shareablee analyzed a large sample of

31,802 influencers in order to generate substantiated, statistically meaningful insights.

Using always-on metrics such as engagement rates, actions, followers, and more, we analyzed

these influencers’ social content posted between January 1, 2017 and September 30, 2017 on

Facebook, Instagram, YouTube, and Twitter. To evaluate the relative performance of different

types of creators, our 31,802 influencers were segmented into the following tiers based on their

cross-social follower counts:

BECAME FAMOUS ONLINE

BECAME FAMOUS OFFLINE

DIGITALCREATORS

CELEBRITIES(20MM+ Followers)

TRAILBLAZERS(1MM+ Followers)

EMERGING VOICES & RISING STARS(250K – 999K Followers)

MICRO-INFLUENCERS(<250K Followers)

Additionally, Fullscreen and Shareablee dove into the consumer sphere to determine the impact and

perception of branded content from influencers. We gave surveys to 1,200 participants aged 18-34

who had engaged with the content of influencers in some way on any of the previously mentioned

social platforms. The results of this feedback helped contextualize the qualitative impact of

branded influencer content, in addition to its measurable outcomes.

FINDINGS

PART ONE: CONTENT ANALYSIS

The first part of our study analyzed the influencer content itself - where creators most frequently

post their content, the type or format of content being posting, and the relative levels of sponsored

content. This information creates a foundation for the second part of the study, which analyzes the

actual impact this content has on consumers and whether or not it causes them to take action.

Content By Platform

Looking at the volume of posting on the social accounts of the study’s sample group, Fullscreen

and Shareablee discovered that across all four platforms (Facebook, Instagram, YouTube, and

Twitter), all influencers post the highest volume of content to Twitter, with each tier posting at

least 45% or more of their total social content to that platform.

INFLUENCE BY THE NUMBERS

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Micro-influencers post the most content to Twitter at nearly 60% of their total body of content

across all their social accounts.

Trailblazers aren’t far behind, with 55% of their total social content found on Twitter.

Emergers/risers are next, having posted roughly 50% of their total content to Twitter.

Finally, celebrities use Twitter to distribute about 45% of all their social content.

Facebook was the second-highest platform for content volume, with influencers posting anywhere

from 25-37% of their total content on that social media site. Instagram hosts anywhere from 12-17%

of all influencers’ content, while digital creators use YouTube to post less than 1% of their content

(micro-influencers) all the way up to 8% of their total content (trailblazers).

3

WHEREPOSTED

DIGITALTRAILBLAZERS CELEBRITIES

YouTube

To be read: 28% of micro-influencers’ overall social posts are distributed on Facebook.

Facebook

Instagram

Twitter

>1%

28%

14%

58%

3%

33%

14%

50%

8%

25%

12%

55%

1%

37%

17%

45%

SOCIAL POSTS BY PLATFORM

DIGITALEMERGERS& RISERS

MICRO-INFLUENCERS

Content By Attributes/Types

Next, we looked at what influencers were sharing. The types of content generated by the

influencers in our sample varied from one social platform to the next:

On Facebook, for example, all tiers of influencers are more likely to create photo and video

posts than they are to create simple link-based or status updates (though celebrities post the

majority of the link posts at 41% of the total content analyzed on Facebook).

Link-based content is popular on Twitter; anywhere from 55-85% of all influencers’ content

posted to Twitter provided some type of URL or link.

Photo content is unsurprisingly the preferred content type of all influencer tiers on Instagram (with

74-92% of their total content on the platform assuming this format), but posts including hashtags

are also prominent at 43-78% of influencers’ total content.

INFLUENCE BY THE NUMBERS

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While all tiers of influencers were found to partner with brands on sponsored content, celebrities

were actually the least likely to do so at <1% of their total content on Twitter to just 2% of their total

content on Instagram. Digital-native creators are far more likely to work alongside brands:

3% of micro-influencer content on Facebook was co-branded, with emergers/risers and

trailblazers claiming 2% co-branded content.3

Micro-influencers and emergers/risers again claim higher levels of co-branded content on

Twitter than other tiers at 6% each.4

Instagram boasted the highest rate of co-branded or sponsored content across influencers,

with micro-influencers and emergers/risers labeling 8% and 7% of their content as

sponsored, respectively.5

Content Engagement by Platform

Although all influencer segments post less than 20% of their total social posts to Instagram, this

posting impressively accounts for over 60% of total social engagements. This is driven by Instagram's

higher engagement rate relative to Facebook, Twitter, and Youtube. Fullscreen and Shareablee

discovered micro-influencers and celebrities generate the most engagements from Instagram, at

86% and 83% respectively.6

This reliance on Instagram for driving engagements is far less significant for digital creators.

Emergers/risers and trailblazers see higher levels of their total engagements (like, comments, shares,

etc.) coming from Youtube - 11% and 24% respectively.6 Social video posting at large, and specifically

on Youtube, requires a real commitment from influencers and thus creates a higher barrier to entry in

the space. Digital creators have dedicated themselves to the platform in a way that both celebrities

and micro-influencers have yet to do.

WHEREPOSTED

DIGITALTRAILBLAZERS CELEBRITIES

YouTube(views excluded)

To be read: 11% of digital emergers & risers’ total social engagements (likes, comments, shares) occur on Youtube.

Facebook

Instagram

Twitter

1%

10%

86%

3%

11%

13%

70%

6%

24%

7%

61%

8%

1%

10%

83%

6%

SOCIAL ENGAGEMENTS BY PLATFORM

DIGITALEMERGERS& RISERS

MICRO-INFLUENCERS

3 Facebook co-branded content is posts created with partner advertisers.4 Twitter co-branded content is posts created with partner advertisers and determined by a relevant hashtag (#ad and/or #sponsored). 5 Instagram co-branded content is posts created with partner advertisers and determined by a relevant hashtag (#ad and/or #sponsored). 6 Engagement rates for YouTube exclude video views. INFLUENCE

BY THE NUMBERS

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PART TWO: BEHAVIORAL SEGMENTATION OF INFLUENCERS

But enough about the nitty-gritty. In order to get the big picture of influencer marketing, Fullscreen

and Shareablee focused not just on the types of influencer content being posted, but also on the

resulting levels of engagement. And furthermore what does that engagement translate to beyond

likes, comments, and shares? Does partnering with a specific tier of influencer really generate new

business for brands? No worries: we found the answers to these questions and more.

More Followers ≠ Less Engagement Overall, this study revealed mid-tier Influencers – emergers/risers and trailblazers – have the most

engaged fans, providing the best engagement rates on average across the major social platforms.

Trailblazers in particular generate the highest levels of engagement at 0.66%, while emergers/risers

follow close behind at 0.60%. And while micro-influencers tend to be heavy on Instagram, the most

engaging social platform, on average their posts see just 0.35% engagement rates, less than half that

of emergers/risers and about a third the amount of engagement from trailblazers. While behind

digital creators we even see celebrities out-performing micro-influencers in terms of engagement.

Overall this data goes against the common perception that there is an inverse relationship between

follower counts and engagement rate.

Intention Behind Content Fans can sense an inauthentic sales pitch a mile away. That’s why the perception of influencers

and their content is a key factor in whether or not these fans choose to pay attention to (or ignore)

branded content from these same influencers. As such, the Fullscreen and Shareablee survey asked

fans to provide their thoughts on why social media influencers create digital content.

The majority of participants (78%) believe the primary intention behind influencer content is to earn

money, with consumers believing micro-influencers are the most likely to have this intention when

creating content. Likewise, 68% of consumers believe self-promotion drives digital creation, and

50% of them believe influencers create content to become famous.

0.7%

CELEBRITIES DIGITALTRAILBLAZER

DIGITAL EMERGER& RISER

MICRO-INFLUENCERS

0.6%

0.5%

0.4%0.4

0.660.6

0.35

0.3%

0.2%

0.1%

0%

*As a percentage of total social fan count, the average number of total social actions (likes+comments+shares+reactions) taken on each post published by the influencer across Facebook, Instagram, Twitter, and Youtube. Date Range: January 2017 - September 2017

CROSS-SOCIAL ENGAGEMENT RATE* (%)

INFLUENCE BY THE NUMBERS

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But while fans recognize the cash incentive behind branded content posts, nearly half of them also

believe influencers create content to provide “interesting and useful content to fans” (48%) and “for

self-expression and creativity” (47%). On average, every tier of digital creators performed better on

these altruistic metrics than celebrities.

Younger generations in particular are able to overlook the practical, business-venture side of

influencer content and support the altruistic ideals of creating useful content for their fans and for

self-expression and creativity. While participants aged 25-34 were more likely to believe in fame or

money-driven intentions, those participants aged 18-24 were far more likely to say influencers are

making content for useful or creative reasons than those consumers aged 25-34.

DIGITAL CREATORS RECEIVE MARKS FOR CREATIVITY & USEFULNESSWhy do you think social media influencers are creating digital content? Select al l that apply.

To provide interesting and useful content for their fans

48%50%

58%

39%

52%50%

78%

47%

68%66% 68% 66%

71%

39%

49%

53%50%

76% 75%79%

83%

39%

51% 51% 52%

To become famous To earn money For self-expression and creativity

For self-promotion

TOTAL CELEBRITIES DIGITAL TRAILBLAZERS DIGITAL EMERGERS & RISERS MICRO-INFLUENCERS

48%

52%

69%

60%57%

48%

71%

76%

60%

46%

18-24 25-34

To provide interesting and useful content for their fans

To become famous To earn money For self-expression and creativity

For self-promotion

Consumer Trust In InfluencersWhen influencers earn fans’ trust, so do the brands they work with. Fullscreen and Shareablee asked

participants how their trust in brands would be affected by influencer content. More than a third of

participants (37%) claimed they’d be more likely to trust a brand after seeing an influencer promote

it. Likewise, almost 40% of survey participants said they’d be more likely to trust what an influencer

says about a brand more so than what the brand says about itself. In general, more than half of

adults aged 18-24 (55%) are willing to trust influencer posts, compared to just 37% of adults aged 25-

34. However, this older demographic is actually the most likely to trust influencer messages about

brands over brands’ own messages at 44%, compared to only 36% of younger audiences.

INFLUENCE BY THE NUMBERS

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The tier of influencer which receives the most trust from consumers on average is the trailblazer,

with 45% of study participants saying their trust in a brand would strongly or somewhat increase

if exposed to brand mentions by this particular tier of influencer. Micro-influencers were the next

most-trusted tier with a 42% likely increase in trust, while emergers/risers followed up at 34%

and celebrities finished at 29%. Similarly, all three tiers of digital influencers appear to be most

trustworthy to consumers over celebrities, with anywhere from 41% to 44% of participants claiming

they would trust what these influencers say about a brand over what the brand says about itself,

versus just 29% with celebrities.

Survey participants could also select a few different reasons for what builds their trust in social

media influencers. Most participants (57%) stated that influencers’ knowledge about their area of

interest would increase their trust, especially as it relates to emergers/risers – 68% of participants

believe this tier is knowledgeable. More than half (51%) of consumers say they trust influencers

because of the authentic and real way they communicate, followed closely by 48% of participants

who say shared interests and passions drive trust. Trailblazers were the most likely tier of influencers

to seem like a friend, with 32% of participants referencing the friend-like nature of such creators

(younger consumers in particular supported this factor in terms of driving trust).

LEVERS OF TRUST FOR DIGITAL CREATORSWhat bui lds your trust, or would bui ld your trust, in a social media influencer? Select al l that apply.

Their recommendations

are accurate

They seem knowledgeable on

the topics they discuss

They are honest about their beliefs

and opinions

They are transparent about

working with brands

They feel real andauthentic in the way

they communicate

We share the same passion/interests

They seem like theycould be my friend

42%

37% 36%

42%

46%

61%

57%

66%

57%60%

55%

59%

55%

37%

33%

39%

51%

46%

50%

56%

48%45%

50%

45%

50%

24%

19%

32%

23%24%

65%

55%

Their recommendations

are accurate

They seem knowledgeable on

the topics they discuss

They are honest about their beliefs

and opinions

They are transparent about

working with brands

They feel real andauthentic in the way

they communicate

We share the same passion/interests

They seem like theycould be my friend

48%

41%

62%

55%

33%

39%

52%50%

57%

47%

33%

26%

60%57%

18-24 25-34

TOTAL CELEBRITIES DIGITAL TRAILBLAZERS DIGITAL EMERGERS & RISERS MICRO-INFLUENCERS

INFLUENCE BY THE NUMBERS

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CELEBRITIES DIGITALTRAILBLAZERS

DIGITAL EMERGERS& RISERS

MICRO-INFLUENCERS

TOTAL 18-24 25-34

42%

36%

20%

44%

31%

45%

29% 27%

41%

48%

41%

26%

45%

26%

As a result of viewing or interacting with influencer posts on social media, did you take or were you motivated to take any fol low-up action onl ine or offline? Select al l that apply.

INFLUENCERS ARE DRIVING FANS DOWN THE PURCHASE FUNNEL

TRIED SOMETHING THEY RECOMMEND (E.G., A RECIPE/RESTAURANT, EXERCISE, ETC.)

MADE A PURCHASE

TRIED SOMETHING THEY RECOMMEND

MADE A PURCHASE

TAKEAWAYS

1. While most influencers post the majority of their cross-social content to Twitter, brands looking

to stand out from the crowd should consider working with influencers on content specifically

created for other platforms.

2. Marketers need to leave behind the idea that large followings equal low engagement rates

and small followings equal high engagement rates. This study found that digital creators with

a mid-range of followers had the highest rate of engagement across social platforms. As

such, brands need a more nuanced approach to partnering with influencers based on their

goals. For example, if a company wanted to reach new audiences on YouTube, it could

partner with an emerger/riser or trailblazer while also considering deals with micro-influencers

or celebrities on Instagram.

Consumer Actions From TrustWhile engagement with and trust in influencer content is of course good news to brands, these

two metrics shouldn’t be the only measurements of success when analyzing the true influence

and impact of digital content creators. To that end, participants in Fullscreen’s study were asked to

provide feedback on whether they had taken any sort of action, either online or offline, after viewing

or interacting with influencer content. The results of this question were favorable, with almost half

(42%) of consumers exposed to influencer content saying they had tried something an influencer

recommended and 26% saying they had made an actual purchase.

Trailblazers and micro-influencers set themselves apart in this portion of the study, proving their

valuable partnership opportunities for brands interested in generating more interest and sales in their

products or services. Trailblazers are the most likely tier of influencer to convince viewers to make

a purchase at 30%, while micro-influencers are excellent at getting consumers to try one of their

recommendations at a 45% success rate. And while both age demographics in the study reported

nearly equal percentages of trying recommendations after engaging with influencer content, adults

18-24 are more willing to make purchases at 48% compared to just 26% of adults 25-34.

INFLUENCE BY THE NUMBERS

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3. Brands and influencers should work together to create great content that’s not only optimized

for the influencers’ unique audiences, but also formatted specifically for each platform. For

example, while engagements per video post on Instagram are actually slightly lower than photo

posts, marketers should consider adding videos into the mix to latch onto the strong growth of

this format — and as a way to differentiate themselves from a sea of images.

4. Digital creators of all tiers (micro-influencer to trailblazer) are far more likely than celebrities

to be seen as creating digital content for creative or useful purposes. Younger generations in

particular are more willing to believe in an influencer’s altruistic intentions, which means they

could be more receptive to the messages brands present them through influencer partnerships.

Overall, brands should carefully consider partnering with celebrities if they want to appear more

genuine, especially to younger consumers.

5. Digital creators are masters at driving trust for brands. This trust is mostly driven by consumers

viewing digital creators as not just knowledgeable and honest, but also by seeming like they

could be consumers’ friends. Brands can capitalize on the strong connection between digital

creators and their fans to drive trust.

6. Influencers have a solid success rate of getting consumers to take action after they’ve engaged

with content from these creators. Therefore, brands interested in driving more awareness of their

name, products, or services should look to micro-influencers, as they inspire the most action from

consumers. Meanwhile, Trailblazers will offer brands the most success at sales, especially with

younger generations.

For more information, contact: [email protected] or [email protected]

About FullscreenFullscreen empowers talent and brands to build and monetize highly engaged, social-first audiences.

The company is a global leader in social-first entertainment experiences serving creators, brands and

consumers. As a leader in branded content and social marketing services, Fullscreen partners with

major brands seeking to engage valuable, elusive youth audiences on social platforms through

original entertainment, influencer marketing, multi-platform social content and targeted media

through the Fullscreen Video Network. Serving a broad range of clients from offices in Los Angeles,

New York, Chicago, and Atlanta, Fullscreen’s rapidly growing brand marketing teams are defining the

future of social-first, content-driven marketing.

www.fullscreenmedia.co

INFLUENCE BY THE NUMBERS